Finance Manager PT OYO Rooms Indonesia
In addition, Consumer Banking optimized the ‘API Banking’ business by the end of 2020 to achieve the goal of becoming the leading digital banking service provider.
Throughout 2020, Consumer Banking recorded 20 million transactions on the ‘API Banking’ platform, an increase from 9.8 million transactions in 2019.
In the future, CIMB Niaga expects that banking services on the Fintech or Startup application will be more user- friendly. In addition to providing transaction comfort and convenience for customers, the development of digital- based products and services also aims to expand the customer service network and complement the services provided at CIMB Niaga branch offices. The development of digital banking services will be increasingly relied upon as an alternative for expanding the Bank’s customer base.
BRANCH OFFICE NETWORK AND DEVELOPMENT OF BRANCHLESS BANKING
In 2020, CIMB Niaga had an office network of 451 conventional and sharia branch offices equipped with 4,316 ATM units and 934 CDM and CRM units throughout Indonesia. CIMB Niaga will continue to optimize its branch network by re-evaluating its adequacy, as well as shifting banking transactions to the Branchless Banking channel.
The development of electronic distribution channels (Branchless Banking) is one of the Bank’s strategies to seize future growth opportunities, specifically in terms of individual customers who are expected to increase their use of technology, including their banking transactions.
CIMB Niaga developed the branchless banking services concept, where digital technology plays a role in helping customers to be more practical and efficient in performing banking transactions, including Consumer Banking business. The primary philosophy that drives branchless banking is to provide services and facilities to CIMB Niaga customers.
Banking transaction service processes can be conducted anywhere without a physical presence at a branch office.
This is expected to increase CASA and cost efficiency at branch offices. CIMB Niaga plans to create a future branch office, namely CIMB Niaga Digital Lounge, to bring together the latest technology and provide a faster banking experience for retail customers.
In order to improve customer services, CIMB Niaga has made necessary renovations and relocations of several branch offices to better and more strategic locations and buildings. Optimization is also conducted by increasing the number of Human Resources Relationship Managers, both permanent staff and third parties, as a part of
branch network development, as well as adding other alternative channels such as the Digital Lounge, Mobile Cash, and ATMs with a withdrawal and deposit system to facilitate customer transaction needs.
In addition, CIMB Niaga also manages Digital Lounge through the Digital Banking Manager, which provides solutions for individual banking customers. The Digital Lounge is a cutting-edge technology that facilitates customer banking transactions at strategic locations, with long operating hours and more flexibility regarding services on holidays. The Digital Lounge service supports the Bank’s Digital Consumer Banking development strategy. In 2020, the Bank opened Digital Lounges in the following locations:
1. Digital Lounge @ Campus – Fisip UI (Depok) 2. Digital Lounge Mall – Lippo Mall Puri (Jakarta) 3. Digital Lounge Mall – Aeon Sentul (Bogor) 4. Digital Lounge Mall – Pakuwon City (Surabaya) 5. Digital Lounge Mall – Malioboro Mall (Jogjakarta) 6. Digital Lounge Mall – Tentrem Mall (Semarang) In total to date, the Digital Lounge has 38 branches.
Other Branchless Banking services for retail customers include: internet banking OCTO Clicks, OCTO Mobile banking, Mobile Account, Phone Banking 14041, Preferred Phone Banking, OCTO Pay, and ATM services. CIMB Niaga continues to maintain its performance by being one of the leading banks in Indonesia that promotes Branchless Banking, as demonstrated by the increasing number of Branchless Banking service transactions from year to year.
QUALITY OF SERVICE AND MANAGEMENT OF CUSTOMER COMPLAINTS
The customer experience serves as the key integrated aspect in CIMB Niaga’s Banking policy to provide an advanced service to customers. To manage the customer experience, CIMB Niaga has made developments such as accelerating service processes, and improving customer convenience and transaction security in all existing banking channels. To provide customer convenience,
CIMB Niaga offers various service channels; branch offices, the Digital Lounge, a 24/7 Contact Center, a Website, email [email protected], Live Chat, and social media accounts such as Facebook, Twitter and Instagram. With the active role of the Customer Care unit, which involves participation from all front/middle/back office units, customer requests and customer complaints are resolved in a timely manner (achievement level of 94% in 2020).
When making process improvements, CIMB Niaga refers to the Voice of Customer (VoC), which holds information about customer complaints, and the annual survey called Net Promoter Score (NPS), which measures the level of customer loyalty and satisfaction with products, channels and quality of service. In 2020, CIMB Niaga’s NPS score was 24%, an increase of 6% from 2019 and the customer satisfaction score in 2020 was 86%, an increase of 6%
from 2019.
In the effort to provide a better banking experience, CIMB Niaga has optimized its Customer Relationship Management (CRM) system to obtain comprehensive information about its customers. This has enabled front-liners to provide personalized services to their customers. In 2020, a new feature was introduced in the CRM system, namely a service module as an end-to- end service platform for both individual and corporate customers. The system will be developed further to ensure that it stays up-to-date.
In 2021, CIMB Niaga will implement the following strategy:
1. Expanding the scope of VOCs with more indepth information in order to provide services based on customer profiles.
2. Strengthening customer analysis with the assistance of voice analytics technology and social media information.
3. Strengthening the Bank’s corporate culture with the Customer Obsession mindset to ensure that each CIMB Niaga employee provides the best possible customer service.
2020 PERFORMANCE
Amid the COVID-19 pandemic, the consumer segment at country level has stagnated and even experienced a decrease.
Nevertheless, CIMB Niaga recorded a positive Consumer Banking performance in 2020.
CONSUMER BANKING LOANS
In 2020, Consumer Banking recorded an increase in consolidated loan disbursement by 1.69%, or Rp0.9 trillion, from Rp54.3 trillion in 2019 to Rp55.2 trillion. Such growth was mainly due to a 5.92%, or Rp2.0 trillion, increase in housing loans from Rp33.8 trillion to Rp35.8 trillion. Meanwhile, the Auto Loans business recorded an increase of 4.44%, or Rp287 billion, to Rp6.8 trillion from Rp6.5 trillion in 2019.
Consumer Banking also recorded a positive performance in other sectors such as credit cards, KTA or personal loans, multipurpose loans and others, which recorded a slight decline. Furthermore, Consumer Banking also maintained a positive performance in relation to the non-performing loan ratio (NPL), which stood at the level of 1.85% in 2020, down from 2.04% at the end of 2019.
Total Loans
(Rp trillion)
2018 2019 2020 54.3 55.2 49.1
NPL Ratio - Gross
(%)
2018 2019 2020 2.04 1.85 2.48
Consumer Banking Loan (Rp billion) 2020 2019 2018 Growth (%)
2020-2019 2019-2018
Mortgage 35,782 33,783 30,022 5.92 12.53
Auto Loans 6,750 6,463 6,215 4.44 3.99
Credit Cards 8,891 9,696 8,600 (8.30) 12.75
Personal Loans 3,271 3,638 3,364 (10.10) 8.14
Multipurpose and Others 511 705 887 (27.49) (20.46)
Total 55,206 54,286 49,088 1.69 10.59
CUSTOMER DEPOSITS
In 2020, Consumer Banking recorded growth in total customer deposits by 1.24%, or Rp1.3 trillion, to Rp106.0 trillion from Rp104.7 trillion in 2019. This was driven by CASA growth of 10.98%, a focus of growth for low-cost funds at CIMB Niaga. The increase was also driven by the growth of savings products by 11.44%, or Rp6.4 trillion, to Rp62.8 trillion in 2020 from Rp56.4 trillion in 2019. The CASA ratio achieved by Consumer Banking in 2020 was 61.10%.
Customer Deposits
(Rp trillion)
2018 2019 2020 106.0 104.7 96.5
CONSUMER BANKING REVENUE
In 2020, Consolidated Consumer Banking recorded a decrease in income before tax of 26.77%, reaching Rp2.2 trillion from Rp3.0 trillion in 2019.
Profit Before Tax
(Rp triliun)
2018 2019 2020 2.2 3.0 2.5